Value of institutionalized dialogue proved: China Daily editorial

Trust is the background and foundation of relations between China and the European Union, and economic and trade differences are only a stage phenomenon. This remark by China's Foreign Minister Wang Yi in his discussions with Emmanuel Bonne, the French president's diplomatic adviser, during the 28th China-France Strategic Dialogue in Datong, Shanxi province, on Saturday highlights why the establishment of institutionalized arrangements provides a safeguard for managing differences and deepening cooperation.

It was notable that while the dialogue covered a broad range of bilateral and global issues, both sides spoke positively of the progress made in the discussions of the second meeting under the China-EU trade and investment consultation mechanism, which was jointly chaired by China's Commerce Minister Wang Wentao and EU trade chief Maros Sefcovic in Beijing on Thursday and Friday.

After their consultations, both sides agreed that the mechanism was operating smoothly and efficiently, and that the second meeting under the mechanism represented a new beginning.

In the absence of such mechanisms, trade disputes tend to trigger a vicious cycle in which unilateral actions and countermeasures escalate quickly. Consultation mechanisms, by contrast, provide channels for communication, allowing both sides to raise concerns, explore solutions and monitor progress.

The endorsement of this assessment during the China-France Strategic Dialogue underscores that in an era of growing global uncertainties, major economies should seek to avoid confrontation over their differences through dialogue.

The consultations in Beijing produced a list of common understandings to address differences in a balanced manner within the framework of World Trade Organization rules. Implementing the outcomes will be conducive to deepening mutually beneficial cooperation and promoting stable development of China-EU economic ties.

During the China-France Strategic Dialogue, Wang clearly articulated China's position on China-EU trade relations, stating that the two sides are fully capable of properly handling economic and trade differences via dialogue and bringing bilateral relations back on track. This reflects a conviction that China and the EU, as two of the world's major economies, share a responsibility to manage their differences properly through dialogue.

Beijing's emphasis on dialogue carries particular weight given recent tensions and trade frictions between the two sides. In the days leading up to the October consultations, France and Germany had proposed strengthening the EU's trade instruments, and the EU has been making preparations for imposing more protectionist measures against Chinese exports and investments.

Bonne said that the EU does not want a trade war with China, nor does it seek to "decouple" from China.

It is clear that confrontation would be mutually damaging. Reflecting this, the agreement of the two sides to continue relevant procedures concerning electric vehicle companies' price undertakings and reviews in the EU's "anti-subsidy" case involving Chinese EVs represents a calibrated step to address European concerns while preserving the sustainability of Chinese exports.

Both sides also agreed to explore the possibility of reducing tariffs on certain goods within the WTO framework and to hold a technical dialogue on the EU's Foreign Subsidies Regulation, while the EU side will continue to work toward resolving key licensing cases involving China in the dual-use sector.

Both sides have agreed to hold the third meeting of the mechanism in March, with a ministerial-level video conference scheduled for January.

Perhaps a critical lesson to be drawn from such productive consultations is that mutual accommodation is possible even amid differences. China and the EU have different economic systems, yet they have demonstrated that these differences need not preclude cooperation.

Healthy China-EU economic ties serve the shared interests of both sides, and also inject certainty and positive momentum into global economic growth. China and the EU should step up their efforts to expand the common ground on key trade and economic issues and work together to implement the outcomes of the latest consultations.